Exploring financial centre networks through inter-urban collaboration in high-end financial transactions in China

This study employs social network analysis to investigate financial networks in China through collaboration between advanced producer services firms in initial public offerings. The results reveal that Beijing, Shenzhen and Shanghai have strategically dominant network positions, and that Beijing–Shenzhen is the most influential city dyad. Cities’ positions are explained by the advantages of both spatial and institutional proximity, defined by arm’s-length transactions to relevant partner firms and government bodies. The network hierarchy mirrors the country's political hierarchy, as network positionality is tied to the location of large state-owned enterprises, government regulators and the embedded power structures that reflect this.